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(Note*)
The formula for the C. O. E.
is in accordance with the Electric
Power Research Institute (EPRI)
for the purpose of evaluating
the C. O. E. of new technologies.
Where:
• C.O.E.
= Cost of Energy in cents per
kilo watt hour (kph)
• CC = Capital cost of the Wind Turbine, $
• FCR = Fixed Charge Rate
• LF = Levelizing Factor
• O&M = Annual operation and Maintenance
cost, $
• AE = Annual Energy produced, kilo watt per
hour (kph)
Tertiary
Definitions:
Capital
Cost:
The
capital cost of the Mariah
Turbine System (MTS) represents
the total amount of money
required to buy, install
and commission.
Fixed
Charge Rate:
A
function of financial parameters
that includes the life expectancy
of the Mariah Turbine System,
depreciation, taxes, ROI, insurance
and inflation.
FCR
is a Uniform Annual Payment
(UAP) rate A/K/A the recovery
factor.
Levelizing
Factor (LF):
Operation
and maintenance costs will
increase with time as it is
directly linked to inflation.
When compiling the COE of the
Mariah Turbine System, the
O&M costs are balanced
by multiplying the first years
O&M costs by the LF. The
LF contains two variables:
(1) The UAP applied to the
capital component. (2) A factor
which discounts inflation over
time.
Annual
Operation & Maintenance
Cost (O&M):
O&M
costs are based on a cluster
(25 wind turbines), A/K/A Wind
Farm.
Annual
Energy (AE):
Annual
Energy output of the Mariah
Turbine System is site-specific.
(Meaning) each geographical
location provides natural wind
power over any fiscal year.
Therefore this factor must
be computed for each site condition.
C.O.E.
as it applies to a 4 MW Mariah
Turbine System for 1 year:
IF:
CC = $ 3,678,000.00 (Capital
cost of the Wind Turbine)
FCR
= 16% (5% depreciation over
30 years) + (9% ROI) + (1%
insurance and tax)
+
LF
= 2 (standard rate)
O&M
= $ 12,000 (estimated)
Divided
by:
AE
= 19,272,000 Kilo Watts per
Year
( 4,000 kilo watts X 24hrs = 9,600kw/day) X
365days = 35,040,000kw/yr.) X 55% (operational
time) = 19,272,000 (predicted KW/Yr.)
(3,678,000
x .16) + (2 x 12,000) ÷ 19,272,000
= (588,480 + 24,000) ÷ 19,272,000
= 612,480 ÷ 19,272,000
C.O.E. = .04 cents/kwh ( .03178 actual) |
